Get ready for higher prices at the liquor store in Tamil Nadu. The state’s government-run retailer, Tasmac, is gearing up for a possible rate hike on alcohol sales. This comes after new changes to the Goods and Services Tax (GST) kicked in last September, pushing up costs for the liquor industry.
Alcohol itself stays out of the GST net, but the updates in GST 2.0 hit related areas hard. For starters, packaging like bottles, caps, labels, and cartons now faces an 18% tax, up from the previous 12% to 15%. Transportation and logistics services also jumped to 18%. Since manufacturers and distributors can’t claim tax credits on these inputs for alcohol production, the extra costs hit them directly.
Industry experts say these rising expenses will trickle down to shoppers, leading to steeper retail prices for liquor in Tamil Nadu. Packaging and shipping make up a big chunk of the overall costs, so the GST revision could shake up pricing across the board.
Tasmac, which controls all liquor sales in the state, is taking a close look at the changes. They plan to decide on adjustments after talking with manufacturers and the State Finance Department. The corporation offers 551 brands, including 302 types of spirits, 26 beers, and 223 wines, sold at 4,787 outlets and special FL-11 shops statewide.
For the financial year 2024-25 through March, Tasmac brought in a whopping Rs 48,344 crore in net revenue, making it a major cash cow for the Tamil Nadu government. Officials believe a price increase might dip sales a bit at first, but steady drinking habits in the state should keep revenues on track.
The government is watching closely, weighing its reliance on excise and liquor income against how price jumps affect everyday consumers. With so many people relying on Tasmac for purchases, any hike could tweak household budgets.
Expect an official word on the new Tamil Nadu liquor prices in the next few weeks, once the reviews wrap up. In the meantime, if you’re heading to a Tasmac outlet, brace for potentially bigger tabs.
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